Bobby Jindal's political appointees have showered his campaign with cash

There are two things that tend to be true of the people Gov.
Bobby Jindal
appoints to the dozens of boards and commissions in Louisiana: They agree with the governor's agenda. And they have contributed, often generously, to his campaign fund.

At least 317 appointees, their families and their companies gave the governor's campaign more than $1.8 million in contributions in a four-year period that ended in 2012, according to a
joint examination of campaign finance records
by NOLA.com | The Times-Picayune and WVUE Fox 8 News.

Their donations made up more than 13 percent of the $13.3 million Jindal raised in that period - a significant haul from a relatively small group among thousands of Jindal donors.

Story by

Manuel Torres
NOLA.com |
The Times-Picayune

Lee Zurik
Fox 8 News/
Fox8live.com

Critics say the appointments look like a political payoff for
top donors.
Defenders say it's only natural that a governor would select his allies for policy roles and that the contributions are almost coincidental.

The donors were named to serve on boards of all sizes and importance, including several entities that can have a profound impact on many Louisianians through policies that help set what it costs to attend public universities or decide which businesses get millions of dollars in tax incentives, among others.

Reporters found several cases in which money arrived at the Jindal campaign within days or a few weeks of the governor announcing a contributor's appointment. Robert Heitmeier, a river pilot and brother of state Sen. David Heitmeier and former Sen. Francis Heitmeier, for example, gave the Jindal campaign a $1,400 check on March 3, 2011. Just 18 days later the governor tapped Robert Heitmeier to chair the board that investigates misconduct among river pilots.

Jindal didn't grant an interview to discuss his campaign finances. In a statement, his office said: "Appointments to boards and commissions are made, and the senate confirms them, based on a person's experience and whether it's in the best interest of the state. Contracts are determined by individual agencies and typically have to be vetted through a competitive bid process."

Heitmeier didn't return a message seeking comment. A few other board appointees who agreed to be interviewed or who sent written statements said they contributed because they support the governor, and that they weren't asked to donate in exchange for a board appointment.

While Jindal is not unique in tapping top contributors for boards and commissions, he is breaking new ground when it comes to the levels of contribution. Compared to his predecessor, former Gov. Kathleen Blanco, Jindal is raking in nearly three times as much campaign money from political appointees as Blanco did over a similar period of time. And Jindal vetoed a bill in 2009 that would have required the governor and other elected officials to disclose how much board appointees contributed to their campaigns.

The large sums going to Jindal's campaign and the close timing between donations and appointments are not proof of wrongdoing, but they do raise questions, LSU professor and historian Bob Mann said.

"He's doing what governors and presidents before him have done from time immemorial, appoint their supporters, their contributors to top jobs. The difference is Bobby Jindal told us he was different. He said you could not buy influence in his administration," said Mann, who served as Blanco's communication director and is now a contributing writer to the NOLA.com | The Times-Picayune's editorial pages.

Examining appointees

The review of contributions from political appointees was part of
a four-month effort
by NOLA.com | The Times-Picayune and WVUE Fox 8 News to take a comprehensive look at the state's campaign finance practices. The news organizations gathered records for more than 740,000 contributions between 2009 and 2012 to examine giving and spending patterns by politicians, their supporters and other interest groups.

In the four years reviewed by NOLA.com | The Times-Picayune and WVUE Fox 8 News, Jindal's campaign received more than $1.8 million through 704 contributions sent by political appointees and dozens of companies and entities they own or run. This "bundling" of contributions is common and legal as long as one donor or entity doesn't pay others to serve as fronts to make contributions.

Reporters then took a closer look at a selection of 12 state boards and commissions in which the governor has sole discretion for naming all members or designees - as opposed to simply choosing from nominees supplied by universities or professional organizations. These included three higher education boards, the Commerce and Industry Board, the Mineral Board, and the Motor Vehicle Commission, among others.

The results were striking: Almost every gubernatorial appointee -- 96 of 118 -- gave to Jindal's campaign and the amounts were eye-popping, records show.

Of the 15 members of the Board of Commerce and Industry, all but one combined to give more than $346,000 to Jindal, most in recent years. The board helps determine how the state spends tens of millions of dollars in tax incentives for manufacturers and other industries.

On the Board of Regents, which oversees higher education policies, 15 of 16 members gave more than $286,000. The Louisiana State University Board of Supervisors was not far behind, with nine of 10 members ponying up more than $226,000.

Some of Jindal's largest bundlers have received important board appointments. Alexandria construction executive Bryan Bossier, his family and companies tied to them have given the governor $137,000, nearly all since 2006. Jindal appointed Bossier to seats on the Board of Commerce and Industry in 2008 and the Louisiana Highway Safety Commission in 2010.

The second largest bundler among appointees was Cutoff businessman Jimmie Martin Jr., whom Jindal reappointed to the University of Louisiana System board in January. Martin and his business interests have given the governor nearly $70,000 in contributions since 2007, records show.

Last year, Jindal appointed Metairie auto dealer Ray Brandt to the Board of Regents. Records show Brandt, his wife, and six of Brandt's companies gave the governor a combined $55,000 since 2007.

Brandt said: "I'm a true public servant, I gave money to the governor for the betterment of the people and expected nothing in return. I don't have an expense account, I don't seek reimbursement and I get no form of compensation."

He said the boards in which he serves are "demanding jobs that require a lot of education and a lot of expertise. I believe the governor selected me because he knows I work hard and I'm prepared. It's horrible that people like you put a spin on this to make people look bad."

Some contributions came around time of appointments

The review found other examples of contributors who sent checks to Jindal's campaign within weeks before or after their appointments - a timeframe in which most had just been appointed or would have known they were being considered.

Henry Shane

Kenner developer Henry Shane's architecture company, Favrot and Shane, contributed $5,000 on Jan. 1, 2010, less than a month after Jindal appointed Shane to the board that oversees the Superdome and New Orleans Arena. Shane said he resigned the appointment a few months later, after he was alerted to a possible conflict of interest because his companies have contracts with the Zephyrs, which play in a venue the Louisiana Stadium and Exposition District oversees.

Shane said he has supported Jindal since he ran for Congress a decade ago and that Jindal did not ask for a contribution when he contacted Shane about serving on the LSED in late 2009. Shane said he also was appointed to boards by former Govs. Mike Foster and Kathleen Blanco, and that his firms have also contributed to their campaigns.

"I have and will continue to support various campaigns for public office. It is important that the right leaders be selected for the future of our state," Shane said. "I am proud to be able to do so."

Shane said his family's political giving pales in comparison to their charitable donations. He said the $5,000 donation to Jindal in January 2010 "may be shocking to someone making $60,000 or $70,000 a year. ... But we give much more to charity."

The appointment of Alexandria physician Christopher Rich to the New Orleans Academic Medical Center Board came even closer to her donation than Shane's. Jindal nominated Rich on March 2, 2010. Two days later, Rich made a contribution of $2,500. Rich said he supported Jindal since his first campaign for governor, and that his March 2010 contribution "had absolutely nothing to do with my appointment." He said he resigned from the board once a public-private management agreement with Touro and Children's Hospitals was finalized in May 2013.

Metairie executive Thomas Grimstad's firm, Louisiana Medical Mutual Insurance, gave Jindal the maximum $5,000 two weeks after Grimstad's appointment to the Louisiana Racing Commission in September 2012. Grimstad, who is the company's president and CEO, said the decision to donate was made by the company's board and that the firm had supported Jindal before. Grimstad said he also was a Blanco appointee to the commission, and that his firm's contributions were not connected to appointments.

"I've been appointed by both a Democrat and a Republican, without any solicitation for contributions," he said.

Jimmy Faircloth

In one case, an important board seat was handed down within one politically connected family when one member stepped down. Jindal's former executive counsel, Jimmy Faircloth, resigned from the University of Louisiana System Board of Supervisors in January. The governor named Faircloth's wife, Kelly, to fill the vacancy. Jimmy Faircloth had contributed $25,000 to Jindal's campaign, and is among Louisiana's most generous political donors overall.

Faircloth didn't return a message seeking comment.

Not just Jindal

While Jindal is not the first chief executive to benefit from donations from appointees, the level of giving is impressive. A comparison of contributions to Jindal and Blanco from members of three higher-education entities -- the Board of Regents and the boards of supervisors for the Louisiana State and the University of Louisiana systems - shows a wide discrepancy.

Members of these three boards, their families and companies contributed almost $239,000 to Blanco during the decade that ended in 2007, her last year in office. The current boards, their families and companies gave Jindal more than $702,000 in the last decade.

For the general public, tracking all these donations by appointees can be challenging, as there's no single repository where contributions and appointments can be jointly examined. State Rep. Neil Abramson, D-New Orleans, persuaded lawmakers in 2008 to pass, without a dissenting vote, a bill requiring elected officials representing any district of more than 5,000 people to report contributions of more than $1,000 received from anyone they hire or appoint to boards. After expressing no opposition during the session Jindal vetoed the measure citing drafting errors, which Abramson disputed.

Rep. Neil Abramson, D-New Orleans, takes the floor as house members debate amendments proposed to House Bill 976 at the State Capitol Building in Baton Rouge in March 2012. (Photo by Brett Duke, NOLA.com | The Times-Picayune archive)

Abramson's measure has not been able to gain traction since. Instead, the Legislature in 2009 passed a less comprehensive bill by state Sen. Bob Kostelka. The measure requires nothing of elected officials; instead, appointees to state boards and commissions who are subject to state financial disclosure requirements must also list any contributions of more than $1,000 to the official who appointed them, as long as the contribution took place within one year of the appointment.

Abramson's proposal would have imposed the same penalties that apply to financial disclosure forms. Kostelka's measure, however, included no penalties for failure to disclose contributions. Several appointees who were subject to the disclosure requirement have failed to report their giving.

Among them is Board of Regents member Chris Gorman, of Shreveport. His 2010 financial disclosure omitted a $4,500 contribution to Jindal's campaign given a month before the governor tapped Gorman for the board in December 2010. Others who didn't report eligible contributions to Jindal included University of Louisiana System board member John Letard and Ernest N. Morial Convention Center board member Ed Markle, records show.

Abramson, meanwhile, said he still believes all elected officials across the state should be responsible for disclosing contributions they receive from people they tap for appointments.

"People should be able to decide for themselves whether someone got appointed because they are qualified or because they gave a campaign contribution," Abramson said.

GENEROUS TO JINDAL
The majority of appointees in these state boards contributed generously to Gov. Bobby Jindal's campaigns ...

Board or commission

Members who contributed to Jindal

Total contributions

Board of Commerce and Industry

15 of 16

$346,101

LSU Board of Supervisors

12 of 16

$288,714

Board of Regents

15 of 16

$286,487

University of Louisiana System

10 of 14

$189,711

Motor Vehicle Commission

14 of 15

$116,850

Louisiana Stadium and Exposition District

5 of 5

$87,850

Mineral and Energy Board

5 of 10

$77,867

Wildlife and Fisheries Commission

3 of 5

$55,500

Ernest N. Morial Convention Center Board

6 of 8

$53,879

5th Louisiana Levee District Board

4 of 6

$43,143

Pilotage Fee Commission

3 of 3

$31,000

Public Facilities Board

5 of 5

$17,310

TOTAL

96 of 118*

$1,594,412*

*Totals reduced by one board member and $33,000, to avoid counting twice a member of two boards.

Among those 118 appointees, these were the most generous donors for Bobby Jindal in the last decade:

Name

Bond or commission

Total contributed

Bryan Bossier

Commerce and Industry

$137,000

Jimmie "Beau" Martin

University of Louisiana System

$69,353

Bobby Yarborough

LSU

$63,585

Ray Brandt

Board of Regents/Motor Vehicle Commission

$55,000

Jack Lawton

LSU

$51,000

Chris Gorman

Board of Regents

$42,000

Lee Mallett

LSU

$40,000

Richard A. Gonsoulin

Commerce and Industry

$38,000

Carl Shetler

University of Louisiana System

$37,300

Richard Lipsey

Board of Regents/Commerce and Industry

$33,000

Jack Varner

5th Louisiana Levee District

$31,750

Pat Manuel

Wildlife and Fisheries

$30,000

Robert Bruno

Board of Regents

$28,500

Roy Martin

Board of Regents

$27,926

Matthew J. Ungarino

Mineral Board

$26,000

Jimmy and Kelly Faircloth

University of Louisiana System

$25,000

Bay Ingram

Mineral Board

$24,767

TOTAL

$760,181

Source: Ethics Administration, corporate and other records, staff research

CORRECTION: An earlier version of this story reported that Board of Regents appointee Ray Brandt failed to disclose a $5,000 contribution to Gov. Bobby Jindal under a law requiring appointees to state boards and commissions to list contributions of more than $1,000 to the official who appointed them. But Brandt's canceled check and disclosure form show he did properly report the 2011 contribution as a donation to the "Governor Bobby Jindal Inaugural Committee." The disclosure did not show up in a search by NOLA.com | The Times-Picayune and Fox8 reporters because Jindal had reported the same donation as a contribution to his separate campaign fund.